Thursday, August 28, 2014

How Efficiency Improvements Drive the AEC Market

From owners to contractors to contractors, the goal of being faster, better, cheaper drives basic strategic thinking.  A random sample

From the CH2M Hill website and their announcement of a new asset management practice leader:

"While at HDR, Scott also served as the project manager for Seattle Public Utilities’ (SPU) benchmarking and workplace efficiency project. He led the development of a prioritized plan to increase cost efficiencies in service level delivery to all of the utility’s customer accounts. The plan is helping the utility identify key improvements to reduce operating expenses and improve its business strategy and processes, as well as its use of information technology. During this time, Scott also worked with numerous other utilities, to develop business optimization plans - driving greater operational efficiency, as well as customer service."

From ENR and their article on global contracting:

"The global market is growing, but contractors are facing increased pressure from clients to deliver projects more economically. "Clients, globally, have become increasingly cost-conscious," says Atul Punj, chairman of India's Punj Lloyd. He says the key to success is technology. His firm has been able to succeed by providing value engineering and economically viable solutions at the outset of projects, he says.

"The contracting industry keeps getting more competitive and profit margins keep shrinking, mainly driven by changing procurement policies," says M. Sani Sener, CEO of Turkey's TAV Airports Holding. "In today's environment, firms have to be technically competent as well as being commercially competitive. No company can afford to charge a premium based on purely technical advantages," he says."

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